Established Banks should be ashamed of their current Social Media efforts

Does it surprise anyone that banks like HSBC have recently come out with some very public criticism of their own social media efforts?

http://www.marketingmagazine.co.uk/article/1213004/banks-social-media-approach-years-behind-admits-hsbc

You might struggle to believe that any brand in this day in age struggles to fully appreciate the importance of a one to one interaction with customers however it is clear the banks have yet to fully grasp the importance of this concept. And why should a customer service organization in the face of stiff competition from many competitors have any desire to listen to their customers? Crazy right?.

There are many excuses that the banks can, and have used to justify why brand engagement through direct channels just does not exist. Some of the more interesting examples can be found via the link below.

http://www.euromoney.com/Article/3226573/Banks-give-social-media-the-cold-shoulder.html

Regardless of fears and concerns the banks may have in relation to data regulations these concerns simply don’t cut the mustard. There should be no excuse for failing to keep customers happy and eradicating your brand of potential large scale issues by having an open communication strategy with them via your social media sites. How many times have we seen an online customer complaint quickly turn into a viral, PR disaster for brands? The real takeaway fact in the above article is that 2.8 billion use the internet and half of them are signed up to at least one social media site. Ignore this growth area if you will but do so at your own peril.

This isn’t to say that all banks have not fully appreciated the importance of social media. What a refreshing change to see India leading the way in innovation by fully realizing the potential of the Twitter’s and Facebook’s of the world while other companies in the more established, banking markets across the World continue to follow.

http://www.exchange4media.com/52884_banks-cash-in-on-social-media-in-a-big-way.html

Whether it be through gamification or through such incentives like offering access to bank accounts on social media sites the examples included in the above link clearly demonstrate a desire to communicate to customers in new and exciting ways. This is exactly what your direct communication channels to your consumers should be used for. Not only can it allow you to differentiate your product or service against competitors but it can also allow you build an emotional engagement with your loyal following. And in this day in age there aren’t aint no saver long term investment than that!